1 ComfortDelGro Corporation Limited 2Q2017 Results 11 August 2017
2 Financial Overview
3 Key Financial Highlights 2Q17 and 1H17 Revenue($ m) Op Costs($ m) Op Profit($ m) Net Profit($ m) EBITDA($ m) EPS(Cents) 2Q17 2Q16 Incr/(Decr) 1H17 1H16 Incr/(Decr) 987.2 1,022.3 (35.1) / (3.4%) 1,959.2 2,017.9 (58.7) / (2.9%) 875.3 899.4 (24.1) / (2.7%) 1,746.8 1,785.6 (38.8) / (2.2%) 111.9 122.9 (11.0) / (9.0%) 212.4 232.3 (19.9) / (8.6%) 79.4 85.2 (5.8) / (6.8%) 161.9 158.6 3.3 / 2.1% 214.2 220.0 (5.8) / (2.6%) 417.4 425.4 (8.0) / (1.9%) 3.67 3.96 (0.29) / (7.3%) 7.50 7.37 (0.13) / (1.8%)
4 Lower Revenue Compounded by Unfavourable FX 1,022.3 987.2 ($'m) (16.9) (18.2) Decreases in: - Taxi Biz (33.0) - Auto Engg Serv Biz (8.3) Offset by increases in: - Public Trpt Serv Biz 22.3 - Other Biz 2.1 (16.9) FX Translation effect: (20.4) RMB (1.1) AUD 3.3 (18.2) 2Q16 Revenue Decrease in Underlying Business Unfavourable Currency Translation 2Q17 Revenue
5 Lower Operating Costs Aided by Favourable FX Staff costs Higher salaries and related costs, higher headcount in tandem with growth in services Contract services Lower volume of cashless transactions and lower TransitLink expenses following the transition to the BCM Depreciation and amortisation Change in useful life of buses and the revaluation of Soon Lee Depot Fuel & electricity Lower consumption due to loss of the Bulim and Loyang package ($ m) Staff costs Contract services Depn & amort Repairs & maintenance Fuel & electricity Materials & consumables Other operating costs 2Q17 2Q16
6 Lower Operating Profit 122.9 111.9 ($'m) (9.6) (1.4) Decreases in: - Taxi Biz (8.1) - Auto Engg Serv Biz (2.1) Offset by increases in: - Other Biz 0.6 (9.6) FX Translation effect: Revenue (18.2) Expenses 16.8 Net Impact (1.4) 2Q16 Operating Profit Actual Decrease in Operating Profit Unfavourable Currency Translation 2Q17 Operating Profit
7 Financial Position Remains Strong Jun 17 Dec 16 Incr/(Decr) Cash and short-term deposits $606.6m $779.3m ($172.7m) (22.2)% Borrowings $377.1m $345.1m $32.0m 9.3% Net Cash $229.5m $434.2m ($204.7m) (47.1)% Gross Gearing 12.5% 10.8% 1.7% points
8 Lower CAPEX Gross Capex $123.9m Net Capex $107.5m ($'m) Gross Capex $72.1m 20.4 Net Capex $57.0m 15.1 Proceeds from disposal of vehicles 2.9 99.3 16.4 Proceeds from disposal of vehicles 33.6 57.0 Net Capex 107.5 Net Capex 18.1 21.7 2Q17 Capex 2Q16 Capex Buses Taxis Other vehicles, equipment and buildings
9 Higher Cash Generated from Operations 2Q17 ($ m) 2Q16 ($ m) Cash Generated from Operating Activities 176.8 134.4 Utilisation of Cash : Dividends (130.8) (107.8) Net CAPEX (57.0) (107.5) Others (8.5) (4.2) Total Utilisation of Cash (196.3) (219.5) Net Repayment of Borrowings (13.1) (30.0) Net Cash Outflow (32.6) (115.1)
10 Overseas Contribution to Group Revenue of 37.7% and Group Operating Profit of 38.4% Overseas (37.7%) UK/Ireland (22.1%) Group Revenue (2Q17) Australia (10.7%) China (4.6%) Vietnam & Malaysia (0.3%) UK/Ireland (14.8%) Group Operating Profit (2Q17) Overseas (38.4%) Australia (13.3%) Vietnam & Malaysia (0.5%) China (9.8%) Singapore (62.3%) Singapore (61.6%)
11 Overseas Contribution to Group Operating Profit of 38.4% Group Operating Profit (2Q17) Overseas Operating Profit (2Q17) Vietnam & Malaysia (1.2%) Singapore (61.6%) Overseas (38.4%) China (25.6%) UK/Ireland (38.6%) Australia (34.6%)
12 Business Segments
13 Public Transport Services Business -Increase in SBS Transit s Bus revenue following the transition to the BCM effective 1 Sep 2016 -Increase in SBS Transit s Rail revenue from higher ridership on DTL and NEL/LRT mitigated by lower average fares ($ m) -Increase in revenue in Australia from contract growth and indexation and higher charter revenue from rail replacement boosted by favourable currency translation of the stronger A$ Revenue -Decrease in revenue in the UK mainly from the unfavourable currency translation of the weaker and loss of service routes at Metroline 2Q17 2Q16
14 Taxi Business -Lower rental income in Singapore from a lower operating fleet, introduction of flexi rental schemes and the passing on of LTA s diesel tax rebate to drivers in the form of taxi rental discounts ($ m) -Increase in revenue in the UK completely eroded by the unfavourable currency translation from the weaker Revenue -Decrease in revenue in China from lower double shift rate, government mandated reduction in taxi rental rates and unfavourable currency translation from the weaker RMB -Decrease in revenue in Australia from lower rank fees -Decrease in revenue in Vietnam from a smaller fleet 2Q17 2Q16
15 Bus Station Business 6.6 7.0 - Decrease in the underlying business and unfavourable currency translation from the weaker RMB ($ m) Revenue 2Q17 2Q16
16 Automotive Engineering Services Business ($ m) - Reduction in revenue from repairs and maintenance of taxis and lower volume of diesel sold to taxi hirers from a smaller taxi fleet Revenue 2Q17 2Q16
17 Inspection & Testing Services Business 25.6 26.9 - Lower revenue from Singapore due mainly to lower business volume at Setsco ($ m) - Stable revenue from Beijing Revenue 2Q17 2Q16
18 Driving Centre Business - Higher test circuit revenue in China ($ m) Revenue 2Q17 2Q16
19 Car Rental and Leasing Business 8.9 9.2 - Lower leasing fleet in Singapore and China ($ m) Revenue 2Q17 2Q16
20 Dividend FY 17 (cents) FY 16 (cents) Interim dividend 4.35 4.25 Payout Ratio 58.1% 57.8% The dividend policy is to pay out at least 50% of net profit. (a) ComfortDelGro share price of $2.30 on 30 Jun 2017 (b) ComfortDelGro share price of $2.75 on 30 Jun 2016
21 Outlook
22 Costs will continue to be managed prudently Segments Revenue Outlook Public Transport Services Bus Station Taxi Automotive Engineering Services Driving Centre Inspection & Testing Services Car Rental & Leasing Singapore : Increase Australia : Increase UK : Decrease Decrease Decrease Decrease Maintain Decrease Decrease
23 Thank You
Appendix - Group Income Statement for 2 nd Quarter Ended 30 June 2017 2nd Qtr 2nd Qtr Incr / Incr / 2017 2016 (Decr) (Decr) $'m $'m $'m % Revenue 987.2 1,022.3 (35.1) (3.4) Staff costs 368.2 363.5 4.7 1.3 Contract services 129.0 143.3 (14.3) (10.0) Depreciation and amortisation 102.3 97.1 5.2 5.4 Repairs and maintenance costs 63.7 65.4 (1.7) (2.6) Fuel and electricity costs 55.8 59.8 (4.0) (6.7) Materials and consumables costs 38.4 38.4 - - Road tax 29.7 34.8 (5.1) (14.7) Insurance premiums and accident claims 29.3 31.5 (2.2) (7.0) Premises costs 23.2 23.1 0.1 0.4 Taxi drivers' benefits 9.6 14.6 (5.0) (34.2) Utilities and communication costs 4.9 5.0 (0.1) (2.0) Advertising production and promotion costs 4.3 5.0 (0.7) (14.0) Vehicle leasing charges 3.4 5.5 (2.1) (38.2) Other operating costs 13.5 12.4 1.1 8.9 Total Operating Costs 875.3 899.4 (24.1) (2.7) Operating Profit 111.9 122.9 (11.0) (9.0) Net Income from Investments 2.2 4.3 (2.1) (48.8) Finance Costs (2.7) (3.7) (1.0) (27.0) Share of Profit in Associate 0.5 0.7 (0.2) (28.6) Profit before Taxation 111.9 124.2 (12.3) (9.9) Taxation (20.2) (23.3) (3.1) (13.3) Profit after Taxation 91.7 100.9 (9.2) (9.1) Attributable to : Shareholders of the Company 79.4 85.2 (5.8) (6.8) Non-Controlling Interests 12.3 15.7 (3.4) (21.7) 91.7 100.9 (9.2) (9.1)